Notification No: 16/2024 – Central Tax dated 06-08-2024 – Download pdf

Seeks to notify section 11 to 13 of Finance Act (No. 1) 2024

Summary: 
1. Date of Issuance: 6th August 2024.
2. Issued By: Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Government of India.
3. Purpose: Appointment of dates for the implementation of specific provisions of the Finance Act, 2024 (8 of 2024).
4. Effective Dates:
    a. 1st October 2024: Provisions of Section 13 of the Finance Act, 2024, will come into force. 
    b. 1st April 2024: Provisions of Sections 11 and 12 of the Finance Act, 2024, will come into force.

Full Content of the Notification

S.O. …..(E).—In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2024 (8 of 2024), the Central Government hereby appoints, —

(a) the 1st day of October, 2024, as the date on which the provisions of sections 13 of the said Act shall come into force;

(b) the 1st day of April, 2025, as the date on which the provisions of sections 11 and 12 of the said Act shall come into force.

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References from Finance Act 2024

Sec 13 – Effective from 1st Oct 2024

Penalty for failure to register certain machines used in manufacture of goods as per special procedure.

“122A. (1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.
(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation:
Provided that such machine shall not be confiscated where––
(a) the penalty so imposed is paid; and
(b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.

Sec 12 of Finance Act Substitution of section 20 – effective from 1st day of April, 2025

Manner of distribution of credit by Input Service Distributor

(1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.
(2) The Input Service Distributor shall distribute the credit of central tax or integrated tax charged on invoices received by him, including the credit of central or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.
(3) The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.”

Sec 11 following clause shall be substituted, namely:––effective from 1st day of April, 2025
2‘(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;